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Notice how the headlight switch terminals are labelled with a letter.
You have "H" for headlamps, "I" for interior lights, "D" for dash lights (off the dimmer control), "S" for stop lights. "P" for parking lights.
You should have a wire from the "D" terminal going to the dash lights. The wire may appear to be light grey with a red stripe, but if its not faded too bad may appear to be more bluish than grey.
Also, that round white thing on the front of the switch is the dimmer control. Sometimes the brass contact that touches the spring around the back of the porcelain drum can get corroded as well as the spring. You can take that off of there and clean the contact with a point file and knock the rust off that little spring using a wire wheel (carefully). Just barely touch it and turn it all around 360 degrees. That may be the cause of your dash lights not operating. I suggest coating the bare contacts with a little bit of Hi-dielectric silicone compound (gel) to keep them from further corroding.